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avanturin [10]
3 years ago
12

Antiques R Us is a mature manufacturing firm. The company just paid a $9 dividend, but management expects to reduce the payout b

y 8 percent per year, indefinitely. If you require a 14 percent return on this stock, what will you pay for a share today?
Business
2 answers:
Anton [14]3 years ago
6 0

Answer:

The amount to be paid for the stock: $1.82

Explanation:

The value of a stock is the present value of future cash flows expected from the stock discounted at the required rate of return.

Where dividend is expected to decline by an annual rate , the price of  a stock can still be determined using the dividend valuation model, but with a provision for a negative growth rate in dividend.

With a negative growth rate, the model is modified as follows:

P = D×(1-g) /(r - (-g))

D- 9, g - 8%, r- 14%

P = 9× (1-0.08)/(0.14-(-0.08)

  = $1.8216

The amount to be paid for the stock: $1.8216

ArbitrLikvidat [17]3 years ago
5 0

Answer:

I will pay $40,9 for the share today

Explanation:

Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.

Formula to calculate the value of stock

Price = Dividend / ( Rate or return - growth rate )

Price = $9 / ( 14% - (-8%) )

Price = $9 / 14% + 8%

Price = $9 / 22%

Price = $40.9

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avanturin [10]

Answer:

The answer is B. The rate is an indicator of nutrition and health care.

Explanation:

Infant mortality rate means how many children die at birth and/or before reaching the age of 05. This is an indicator of the health sector and it's development in a country.

Mainly, this is because a significant and technologically advanced health sector with a substantial capital investment is required to cater to the health needs of new borns, children and their mothers special health requirements.

4 0
3 years ago
Read 2 more answers
A broker's listing agreement specifies that a 5½% commission is to be paid on the sale price. The sales associate for the firm
tino4ka555 [31]

The amount that the sales associate earn if she sells the property for $369,000 is $11,162.25.

Sales associate's commission

First step  find the total commission

Total commission=$369,000 sale price × .055 rate

Total commission= $20,295

Second step find the sales associate's commission

Sales associate's commission=$20,295 total commission × .55 split

Sales associate's commission=$11,162.25

Inconclusion the amount that the sales associate earn if she sells the property for $369,000 is $11,162.25.

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5 0
2 years ago
A stock currently sells for $49. the dividend yield is 3. 8 percent and the dividend growth rate is 5. 1 percent. What is the am
tatyana61 [14]

If a stock currently sells for $49. tThe amount of the dividend that was just paid is $1.77.

A inventory is a fashionable term used to describe the ownership certificate of any business enterprise. A percentage, on the other hand, refers to the inventory certificate of a selected organization. maintaining a particular organization's percentage makes you a shareholder.

A coins dividend is the distribution of budget or cash paid to stockholders generally as a part of the employer's present day income or accrued income. cash dividends are paid at once in money, as opposed to being paid as a inventory dividend or other form of cost.

Dividend yield=Annual Dividend next year/Current price

Annual Dividend next year=(49*3.8%)=$1.862

Hene, the dividend just paid = Annual Dividend next year * Present value of discounting factor(    5.1%, time period)

⇒$1.862/1.051

⇒$1.77        (Approx)

Learn more about stock market here:-brainly.com/question/690070

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3 0
2 years ago
business ethics chapter 4 critics have argued that, from an ethical perspective, altruistic corporate social responsibility (CSR
Gala2k [10]

Answer:

True

Explanation:

Altruistic Corporate Social Responsibility is a philanthropic approach of the company which undermines the interests of the shareholders because such programs are not approved by the shareholders. This clash between the interests of shareholders and the society is the argue that critics quote to protect the shareholders rights.

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3 years ago
A _______ is a group of people who agree to save their money together and to make loans to each other at a relatively low rate o
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